Downstream Basically Completed Early Stockpiling, Market Transactions Returned to Sluggish [SMM Spot Aluminum Midday Review]

SMM April 29:

SHFE aluminum 2605 fluctuated upward in early trading, with overall aluminum prices still operating within the recent lower range. Some downstream enterprises had completed pre-holiday stockpiling, and overall restocking sentiment pulled back today. Affected by low aluminum prices, overall market shipment sentiment was weak. Some sellers maintained relatively high quotations due to the impact of declining aluminum prices. Some offered lower prices for cargoes with invoices dated next month due to invoice shortages. The market quotation range was wide, with mainstream transactions concentrated around SMM A00 aluminum -20 to +20 yuan/mt. Today's east China market shipment sentiment index was 2.75, down 0.16 MoM; purchasing sentiment index was 2.90, down 0.74 MoM.

On the last day before the Labour Day holiday, downstream processing enterprises in central China had basically completed early stockpiling, and with next month's policies unclear, traders' concerns over insufficient invoice quotas suppressed transactions for cargoes with invoices dated next month, with overall market buying sentiment being sluggish. However, some holders worried about insufficient invoices and tended to offload cargoes in bulk, causing price collapse in some shipment prices. Ultimately, actual transaction prices in the central China market ranged from parity to a discount of 30 yuan to the central China price. Today's central China market shipment sentiment index was 2.84, up 0.01 MoM; purchasing sentiment index was 2.33, down 0.08 MoM.

Inventory side, aluminum ingot inventory in major consumption areas fell 1.4 MoM today, with all three regions showing destocking trends.